ADM to Lay Off Employees Amid Falling Crop Prices

Archer-Daniels-Midland (ADM), a global grain merchant, will commence employee layoffs as part of cost-cutting measures due to plummeting crop prices eroding profitability.

Operations in the United States Targeted

According to sources, operations in the United States will bear the brunt of the cuts. This stems from a decline in corn, soybean, and wheat prices to four-year lows in 2024, leading to reduced profit margins for agribusinesses like ADM.

Global Grain Glut Pressures Profits

The global surplus of grain and low prices have weighed heavily on ADM's profits. The company has previously emphasized cost control and has warned of ongoing challenges in the commodities cycle extending through 2025.

Cargill's Employee Reduction

ADM's competitor, Cargill, began global layoffs in December, aiming to reduce its workforce by 5%. The extent of layoffs at ADM remains unclear.

Impact Across Regions and Departments

While the United States will see the most significant impact, with cuts focused on operational areas such as plants, ports, and warehouses, layoffs will also occur across regions and departments.

Restructuring Announcement Anticipated

ADM executives are expected to discuss the restructuring after the release of fourth-quarter results on Tuesday.